CommVault Systems Inc (CVLT)

CommVault Systems Inc demonstrates strong solvency based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 from March 31, 2021, to March 31, 2025. This indicates that the company is not relying heavily on debt to finance its operations and is effectively managing its debt levels in relation to its assets and capital.

Furthermore, the Financial leverage ratio has shown some fluctuations over the same period, with the ratio peaking at 4.21 on March 31, 2023. Despite these fluctuations, the ratio has generally stayed within a reasonable range, with the highest value still being moderate. This suggests that the company has been able to maintain a healthy balance between debt and equity in its capital structure over the years.

Overall, CommVault Systems Inc's solvency ratios reflect a stable financial position with low debt levels and a prudent approach to managing its capital structure.

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Coverage ratios

Based on the data provided, the interest coverage ratio for CommVault Systems Inc has fluctuated over the past five years.

As of March 31, 2021, the interest coverage ratio was significantly low at -0.17, indicating that the company's operating income was not sufficient to cover its interest expenses during that period. This could be a cause for concern regarding the company's ability to meet its debt obligations.

However, in March 31, 2022, the interest coverage ratio improved substantially to 399.29, suggesting that the company had a strong ability to meet its interest payments from its operating income, which is a positive sign for investors and creditors.

In the subsequent years, the interest coverage ratio for CommVault Systems Inc showed some inconsistency. By March 31, 2023, the ratio had decreased to -31.55, indicating a potential deterioration in the company's ability to cover interest expenses.

Nevertheless, in the years following, the interest coverage ratio exhibited improvement. By March 31, 2024, the ratio increased to 202.20, and by March 31, 2025, the ratio stood at 193.84. This indicates that the company's operating income was sufficient to cover its interest expenses in those years.

Overall, the trend in interest coverage for CommVault Systems Inc has been mixed, with some periods showing strong coverage and others indicating potential financial strain. It would be important to monitor this ratio closely in the future to assess the company's ability to manage its debt obligations effectively.